$ETH
The liquidation you’ve highlighted shows $76K worth of ETH long positions liquidated at $3,456.53. Here's a brief breakdown:
Why Liquidation Happens
For Long Positions: A trader anticipates the price to go up. If the price drops significantly to the liquidation price, the position is closed automatically to prevent further loss of the collateral.
Market Insights from the Chart
The price of ETH is $3,567.37, with a 7.32% rise, indicating strong bullish momentum.
The liquidation at $3,456.53 likely occurred when the price retraced during high volatility.
Volume Spike: There’s a notable increase in trading volume, possibly caused by the liquidation event, as liquidations can amplify price movement due to forced selling/buying.
What This Means for Traders
The chart indicates a recovery after the liquidation point, as ETH has risen significantly since the dip.
Risk for New Long Positions: With the price nearing resistance at $3,574.89, cautious traders may wait for a confirmed breakout or retracement before opening positions.
MACD Trends: While the MACD shows bullish momentum, it's flattening, suggesting momentum could be weakening.